All Forum Posts by: Cliff T.

@Alan Ford I'd highly recommend you chat with your loan officer to get more info on loan forbearance. The more I read about it, the less appealing it is. In particular, the loan modification (e.g. extending your loan terms at the end of the 90 day forbearance) that most banks are offering is not guaranteed -- sounds like consumers may need to "reapply" in some ways similar to a refi (i.e. prove COVID-19 hardship, etc.). Even in the screenshot you provided, the last bullet point clearly says your loan terms may be adjusted if you opt in to the longer-term options. At that point, if you've applied for hardship across all 3 of your loans and have missed payments for 90 days, your interest rate may rise across your entire portfolio.

You also mentioned you're planning to refi down the road... good luck doing that if you have 3 modified loans under your belt due to financial hardship.

There is no such thing as a free lunch. As I mentioned earlier, I think the best advice I have heard across the industry is if you can make your payments, continue to do so. Best of luck.

@Alan Ford - you should confirm with WF, but what I'm reading from your screenshot is you have loan forbearance for the next 90 days and then you receive deferment on any of those payments. So you are, in effect, accruing interest for the next 90 days. Your monthly payment will then increase at that point to make up for the difference.

Not a bad option they are providing you and glad to see the deferment in writing. But if you have the cash on hand / reserves to make payments now, that's the better route.

@Alan Ford - where are you seeing this? When I log in to my WF account and go through the COVID-19 assistance process, I see the following.. this is loan forbearance and not deferral.

Thanks all for clarifying. For those of you considering loan forbearance, it is critical that you realize that INTEREST IS ACCRUED on your missed payments.

To put numbers on this, on a $1m loan at 3.25% interest, it comes out to $90/day in interest. That's $8100 in INTEREST you have accrued if you keep loan forbearance in place for the full 90 days.

In other words, if you have the means to pay for you loan, you really should not be signing up for loan forbearance. Loan deferment on the other hand is almost always beneficial but not many lenders are offering that right now.

@Steve Q. - can you confirm how interest is accrued during forbearance? Is interest applied to the entire missed monthly payment, the portion of the payment that is principal?

Anyone with on the ground insight with how the market is being affected by COVID-19?

Just curious if anyone here has gone through the process yet. Everything that I have read thus far states that loan forbearance payments will be due as a lump sump at the end of 30, 60, or 90 days. In other words, you'll need to pay the full payment at end of the forbearance period. That's not very helpful at all and delays the inevitable.

Has anyone successfully reworked their loan terms and instead, find a way to get a lender to extend the term of the loan by 30, 60, 90 days?

Well said Diane. Thanks for sharing and reiterating the importance of investing when fundamentals make sense.

Anyone have contacts at Bank 21 or NBKC? @Edo Y.

Bumping this back up. Any thoughts on Hickory NC for rentals?